Lender Foreclosing on Adventus’ $128M Riverway Office Loan

Adventus Realty Trust is facing a $114 million foreclosure suit over an office complex it owns near O’Hare International Airport, one of several assets where the major suburban landlord is staring down lenders.

The Canadian firm got a $128 million CMBS loan from JPMorgan Chase Bank to acquire the 870,000-square-foot Riverway office complex in 2016. Adventus failed to pay the monthly debt service amount due June 1, giving the lender the right to foreclose on the mortgage and get an order directing the sale of the property to pay off the debt, according to a lawsuit filed in Cook County court on Friday.

Special servicer LNR Partners is bringing the suit on behalf of lender JPMorgan Chase and trustee Wilmington Trust, court records show. Adventus’ unpaid balance is about $114.6 million, according to the suit.

The loan has been in special servicing since May, and Adventus had stopped funding shortfalls and asked about turning the property over to the lender, according to a report that LNR Partners made to credit ratings agency Morningstar earlier this month. Adventus and an attorney representing the firm did not immediately respond to requests for comment.

The four-building complex at 9399 West Higgins Road in Rosemont was about 68 percent occupied as of the first quarter, down from 91 percent in 2019, according to a report from Trepp. In 2020, the property lost its second-largest tenant, Central States Pension Fund, which had leased about 191,000 square feet.

Riverway isn’t the only asset Adventus is in danger of losing. The REIT missed the March and April interest-only payments on a $350 million loan tied to an eight-building portfolio comprised of properties in the Atlanta area and the Chicago suburbs, including the Crossings complex at 1420 Kensington Road in Oak Brook and Cantera Meadows at 4101 Winfield Road in Warrenville. That loan was watchlisted in December 2020, according to Morningstar.

Another Adventus property, the four-building Oak Brook Office Center, is up for auction this week after the landlord agreed to hand it back to the lender rather than drag out a foreclosure lawsuit.